Stock Exchange Announcement No. 18 - 2006
Auction of bond series 10D and 10E
Realkredit Danmark will auction bonds in series 10D and 10E. The auction of 1-year bonds in series 10D and 10E and 3-year bonds and 5-year bonds in series 10D will be held in equal portions over five trading days from Monday, 11 December, through Friday, 15 December 2006. For the remaining securities identification codes, the auction will be held on Friday, 15 December 2006.
Bonds to be issued by Realkredit Danmark to refinance FlexLån® at 1 January 2007 will form the basis for the auction.
The amount of bonds to be auctioned in each series will be announced on later than 3 trading days prior to the auction.
The preliminary amount of bonds to be auctioned and the exact terms and conditions of the auctions are set out in the appendices to this announcement
Any additional questions should be addressed to Senior Dealer Søren Gravgaard, phone +45 45 13 20 19.
Yours faithfully,
Henrik Blavnsfeldt
Senior Vice President
Terms and conditions of Realkredit Danmark’s auction to be held from 11 to 15 December 2006
Auction:
The auction will take place at the Copenhagen Stock Exchange’s mortgage-issuing sub-market. The Dutch auction principle and hidden call method will be used. Under the Dutch auction principle, all bids above the cut-off prices will be settled in full at the cut-off prices. For bids at the exact cut-off price, proportional allocation may be used. All bids below the cut-off prices will not be settled. Hidden call means that the bidders can only see their own bids, whereas the issuer can see all bids.
Decimal points:
Investors may place their bids at prices with up to three decimal places for 1-year bonds maturing in 2008 in both the 10D and 10E series.
For the rest of the securities identification codes offered, bids may contain only two decimal places.
Bonds:
Realkredit Danmark will put bonds in series 10D and 10E, maturing from 2008 to 2012 on the auction. The amounts offered in each series will be announced on later than 3 trading days prior to the auction.
Bids/settlement:
The auction will be held with three cut off periods 11.00am, 12.30pm and 1.30pm. The cut off period for all 1-year bonds will be 11.00am on all auction days.
The IPMO is set to 10 minutes.
The following bonds will be offered until 11.00am for settlement at 11.10am on the following dates:
Date | DKK 10D | Preliminary amount DKK m. | EUR 10E | Preliminary amount EUR m. |
11 December 2006 | 2008 | 19,280 | 2008 | 410 |
12 December 2006 | 2008 | 19,280 | 2008 | 410 |
13 December 2006 | 2008 | 19,280 | 2008 | 410 |
14 December 2006 | 2008 | 19,280 | 2008 | 410 |
15 December 2006 | 2008 | 19,280 | 2008 | 410 |
The following bonds will be offered until 12.30pm for settlement at 12.40pm on the following dates:
Date | DKK 10D | Preliminary amount DKK m. | EUR 10E | Preliminary amount EUR m. |
11 December 2006 | 2010 | 3,700 | - |  |
2012 | 635 | - | |
12 December 2006 | 2010 | 3,700 | - | |
2012 | 635 | - | |
13 December 2006 | 2010 | 3,700 | - | |
2012 | 635 | - | |
14 December 2006 | 2010 | 3,700 | - | |
2012 | 635 | - | |
15 December 2006 | 2010 | 3,700 | 2010 | 84 |
2012 | 635 | 2012 | 147 |
The following bonds will be offered until 1.30pm for settlement at 1.40pm on the following date:
Date | DKK 10D | Preliminary amount DKK m. | EUR 10E | Preliminary amount EUR m. |
15 December 2006 | 2009 | 1,790 | 2009 | 29 |
2011 | 530 | 2011 | 7 |
Value date:
2 January 2007.
Participants:
Bids will be accepted from all members with access to the Copenhagen Stock Exchange mortgage-issuing submarket.
Other conditions:
1. Realkredit Danmark is not under any obligation to sell the entire amount announced at the auctions.
2. On each auction day, Realkredit Danmark will not trade in the securities identification code or codes offered on the auction at the specific auction day prior to the announcement the results of the auction. After the results have been announced, Realkredit Danmark’s sales will be made at prices only above the cut-off price of each securities identification code.